Are Toronto and Vancouver in a housing bubble?

The UBS Global Real Estate Bubble Index 2023 has revealed the global housing market has suffered due to rising inflation and interest rates over the past two years. Average mortgage rates have tripled since 2023 and house price growth has stagnated, with prices being 5% lower than mid-2022 in inflation-adjusted terms. Toronto and Vancouver have seen the highest market valuations and pressure on house prices, with real prices in both cities correcting by more than 10% in inflation-adjusted terms. Demand for living space is increasing steadily and the pressure is shifting to the rental market.